From Indiatimes · TOI World Desk · · 3m
Oregon Couple Wins $8M After Foreclosure Mistake
Oregon couple gets $8 million award after foreclosure firms wrongly claimed they moved out.
In brief
Oregon couple gets $8 million award after foreclosure firms wrongly claimed they moved out. A jury awarded Wallace and Barbara Owen over $8 million against companies that foreclosed on their home in 2022 despite them still living there. Originally reported by Indiatimes.
Oregon couple wrongly claimed moved out
An Oregon couple in their 70s were wrongly said to have moved out of their own home which was sold at foreclosure in 2:2022 though they never left.
Foreclosure sale in 2022
The house on Skyline Road South in Salem, Oregon was sold at a foreclosure auction in September 2022.
Loan companies claimed default
American Advisors Group claimed in 2021 that the couple had relocated and treated it as a default on their reverse mortgage.
Foreclosure proceeded without verification
The companies did not inspect the property to establish whether the couple had actually moved out.
Postal notices failed to reach
Postal tracking records showed legal notices sent to Wallace Owen had not reached the homeowners nor left Georgia.
Jury awards $8 million
A jury found Clear Recon Corp and Aldridge Pite LLP liable for unlawful trade practices and financial abuse of vulnerable persons.
Wallace gets $108,000
The jury awarded Wallace $108,000 in actual damages and $4.4 million in punitive damages against Clear Recon Corp.
Barbara gets $216,000
The jury awarded Barbara $216,000 in actual damages and $4.4 million in punitive damages against Clear Recon Corp.
Aldridge Pite liable
Aldridge Pite was found liable for misleading statements about surplus funds and refusing to release money on demand.
Economic damages awarded
The jury awarded each homeowner $400,000 in economic damages and $250,000 in non-economic damages after finding financial abuse of a vulnerable person.
AAG found liable by default
AAG had already been found liable by default for financial abuse of a vulnerable person.
Surplus funds withheld
The foreclosure sale generated more than $175,000 above the amount owed on the mortgage but Clear Recon and Aldridge Pite withheld the money.
Homeowners needed funds
Wallace and Barbara said they needed the funds to meet regular living expenses and hire lawyers to defend themselves.
Companies argued for good faith
Lantern Gate Properties maintained it had bought the property in good faith at a public auction and held legal title to it.
Jury verdict details
The jury found Clear Recon liable on all three claims under Oregon's Unlawful Trade Practices Act for willful foreclosure and false statements about surplus funds.
What to remember
A jury awarded Wallace and Barbara Owen over $8 million against companies that foreclosed on their home in 2022 despite them still living there.
